Wednesday, November 10, 2010

Ottawa Fourth in Canada

Ottawa was ranked the fourth most popular city in Canada to invest in, after Toronto, Vancouver and Calgary ...

1 comment:

  1. Canadian Housing: Pricey, Not Dicey

    "A comparison of house prices with personal income suggests that
    Canada’s housing market is moderately overvalued. After doubling in the past
    decade, prices are now adjusting lower in response to less pent-up demand and
    relatively high household debt. The adjustment means that, unlike in the past
    decade, housing will probably not act as a tailwind for the economy, and investors
    seeking continued strong returns might want to look elsewhere. However, prices are
    not so out of line with income that the market cannot adjust through further modest
    declines in prices and increases in income. Though overpriced, the absence of
    widespread speculation and egregiously loose credit standards suggests the market
    is not in a bubble. Instead, Canada’s housing market remains reasonably affordable
    because of exceptionally low interest rates. Barring a sharp spike in mortgage rates
    or a relapse into recession, a substantial price correction is unlikely to occur. The
    greater risk could be that sustained low interest rates might recharge the housing
    market and inflate a true bubble that ultimately bursts when rates normalize."